Pinterest today announced a multi-year strategic advertising partnership with Amazon with the goal of bringing more relevant brands and products to its platform. The new deal will make e-commerce giant Pinterest the first third-party ad partner, the company said in a blog post shared alongside the company’s first-quarter earnings.
The partnership is a step in a new direction for the social networking and image-sharing site, which has been working to adapt to changing consumer interests around product discovery in recent years. As demand for video platforms like TikTok and Reels grew, Pinterest’s image board began to look dated, prompting him to launch his video-first idea Pines and increase your investment in creator content.
But some of those the creator’s efforts were recently terminatedbefore the last quarter of Pinterest lose income where the company also warned of poor first-quarter sales, which sent its shares tumbling.
By comparison, Amazon’s digital ads unit in the same quarter did well, jumping 19% to $11.6 billion.
Like other tech companies, Pinterest has been struggling with the macroeconomic forces affecting its business, but it promised it was working to adapt to the changing environment. The company also laid off 150 employees in February, as tried to cut costs.
While Pinterest has worked for years to connect product inspiration to shopping, Amazon’s ad partnership could offer consumers a more seamless shopping experience. Unlike some eCommerce websites, Amazon shoppers may not have to fiddle with form filling as most already have their payment information on file with the company, leading to faster checkouts.
When users find an Amazon ad on Pinterest, they’ll be taken directly to Amazon to make the purchase, Pinterest says.
“More than 463 million people come to Pinterest each month to create a life they love. Brands and products are an essential part of this journey, allowing Pinners to easily go from inspiration to action and advertisers to gain the value of connecting with users with strong commercial intent,” Pinterest noted in its post. Blog. “Our partnership with Amazon will allow us to scale these efforts significantly,” he said.
The company noted that the rollout of the Amazon ad integrations will take place over several quarters, starting later this year. Pinterest can’t yet say where the ads will appear for end users and isn’t making any near-term forecasts related to revenue impacts, noting that it won’t see a significant impact until next year.
“Amazon Ads is thrilled to partner with Pinterest and make it even easier for customers to discover and buy relevant products through shoppable content, while providing differentiated value for brands,” adds the senior vice president. of Amazon, Paul Kotas, in a statement.
more to come
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